It doesn’t sound like it had much run time on the motor. If so, and looking at the lifter, I’d say it started to fail right off the bat.
The cam is a decent match for the combo, other than perhaps if the converter really only flashed to 3000, it would be a little lower than what I’d consider optimum for a cam that size.
FWIW, for the last several years I’ve used Driven “BR” break in oil exclusively.
68 Satellite, 383 with stock 906’s, 3550lbs, 11.18@123 Dealer for Comp Cams/Indy Heads